Sensex, Nifty post notable losses amid weak global cues, sustained FII selling

MUMBAI — The Indian equity markets posted sharp losses early on Thursday tracking cautious global cues and sustained foreign institutional selling, after the recent rally.

As of 9.25 am, Sensex lost 671 points, or 0.85 per cent, to reach 77,845 and Nifty dipped 179 points, or 0.74 per cent, to reach 24,198.

Main broad-cap indices showed divergence with the benchmark indices, as the Nifty Midcap 100 dipped 0.34 per cent, and the Nifty Smallcap 100 lost 0.16 per cent.

All sectoral indices traded in red except pharma as well as oil and gas up 0.71 per cent and 0.02 per cent. Nifty auto and consumer durables were the top losers down 1.03 per cent and 1.61 per cent respectively.

The immediate support zone of Nifty is placed at near 24,100–24,000, while resistance is observed in the 24,400–24,500 range.

In the previous session, benchmark indices on a weaker note after failing to sustain higher levels. Selling pressure was visible in banking and financial stocks following their recent outperformance.

IT stocks also remained weak, tracking subdued global cues and uncertainty in overseas markets. FMCG, Energy and other defensive sectors showed relative resilience.

The US markets gained after President Donald Trump extended a ceasefire with Iran, saying it was warranted due to Tehran’s “seriously fractured” government.

President Trump said the ceasefire will be in place until Iran submits a proposal or concludes talks, even as the US military continues its blockade of Iranian ports.

On the fundamental side, earnings remain a strong tailwind, with Q1 earnings growth tracking and forward EPS estimates seeing upward revision, market participants said.

In Asian markets, China's Shanghai index lost 0.74 per cent, and Shenzhen dipped 1.48 per cent, Japan's Nikkei lost 1.06 per cent, and Hong Kong's Hang Seng Index declined 1.2 per cent. South Korea's Kospi lost 0.91 per cent.